Looking for a cheap flat fee investment platform

johnjo569

Hi

I currently have 7 separate investment funds sat in an ISA on the percentage fee based Charles Stanley Direct platform and I really need to change them over to a flat fee platform as the pot is now worth over 60k and I don't think its great value anymore as the percentage fees taken out are starting to mount up. I invest a lump sum into each of the 7 funds once each quarter so that's 28 trades a year and I also transfer money in to the ISA each month via direct debit.

Does anybody have any suggestions for a decent low cost flat fee provider. I have seen iWeb, Lloyds, ii, Halifax and some others but i just don't know which is any good!!

Any suggestions from experience using these would be really appreciated.

ColdIron

https://monevator.com/compare-uk-cheapest-online-brokers/

jimjames

I use iWeb, £5 a trade and no holding fees.

george4064

You could also benefit from switching to an investment platform that has a capped fixed fee charge for listed investments, this would mean transferring your assets to one of these platforms (YouInvest or HL) and switching your portfolio into a range of investment trusts and/or ETFs.

I have my ISA with YouInvest and despite having over £60k the annual charge is just £42 or £3.50 per month, equivalent to 0.07% per annum platform fee.

EdSwippet

johnjo569 said:

... I invest a lump sum into each of the 7 funds once each quarter so that's 28 trades a year and I also transfer money in to the ISA each month via direct debit.

Flat fee platforms all charge at least something for trades. With that level of activity your trading charges will cut into the saving. Can you cut this down? Reduce the number of funds, or trade less frequently?

marycanary

https://comparefundplatforms.com/

This site might help

GeoffTF

EdSwippet said:

johnjo569 said:

... I invest a lump sum into each of the 7 funds once each quarter so that's 28 trades a year and I also transfer money in to the ISA each month via direct debit.

Flat fee platforms all charge at least something for trades. With that level of activity your trading charges will cut into the saving. Can you cut this down? Reduce the number of funds, or trade less frequently?

Freetrade does not:

https://freetrade.io/compare-plans

Nonetheless, iWeb will be cheaper for many and us owned by Lloyds Banking Group, so perhaps it is safer.

DiamondLil

@johnjo569 - I have seven accounts with HLAM and similar situation to you I invest a lump sum into each every now and again.

I used to hold these with Charles Stanley but, like you, the charges started to mount.

As the holdings are all investment trusts, I moved to Hargreaves Lansdown who don't have ongoing fees for these holdings;

although the trading fee is higher than most, as I can't find another platform which allows me to hold multiple accounts I just put cash into the accounts and trade less frequently. I am happy with their service which has been excellent thus far.

My main investment account is an ISA with IWeb, who I am also very happy with, but unfortunately IWeb won't allow more than one ISA plus one trading account which rules them out.

Hence the seven other accounts with HLAM.

GeoffTF

Why would you want seven accounts with the same broker?

DiamondLil

GeoffTF said:

Why would you want seven accounts with the same broker?

Designated accounts; one for each of my grandchildren.

VikingFjordIFA

Of course the cost is important, and the more money you have invested the more important a fixed platform fee is.

I am basing this on the client being happy with a DIY approach, and has a good understanding of analysing fund performance, etc.

Different platforms have different levels of granularity of performance analysis.

For example:

• interactive investor charge a fixed fee of £119.88 / year and use Morningstar's Portfolio X-Ray to analyse portfolio and underlying fund performance. However, X-Ray is not able to give you annualised performance or indeed performance of a fund since the investment was made. It uses only the fund's performance with no notice of how long the investor has held it.
• Fidelity charge 0.35% of fund value / year, but is able to analyse your portfolio performance at much more detail (annualised, since the start of the holding, etc.)

So, you get what you pay for. And the less you pay, the more you need to rely on your own knowledge and how comfortable you are with making your own decisions.

It is the same for using IFAs. Yes, advice costs money, but will provide a level of knowledge and expertise many investors do not have.